Datadog Stock Says: What AI Sector Selloff?

Core Insights - Datadog Inc (NASDAQ:DDOG) reported adjusted third-quarter earnings of 55 cents per share on revenue of $885.65 million, exceeding analyst expectations and raising its fiscal fourth-quarter guidance significantly [1] Stock Performance - Datadog's stock increased by 20.6% to $186.95, marking its best single-session gain since November 2023, and reached a four-year high of $189.49 earlier in the day [2] - Year-to-date, the shares have risen by 30.3%, with support observed at the 30-day moving average and the 80-day trendline during August and September [2] Market Sentiment - The current rally is notable as it is not driven by a reversal of negative sentiment; most brokerages maintain "buy" or better ratings for Datadog, with only 3.4% of the stock's float sold short [3] - Options trading activity is high, with over 43,000 calls traded, which is 14 times the average intraday volume, and approximately three times the number of puts exchanged [3] Volatility Performance - Datadog has a strong tendency to outperform volatility expectations, as indicated by its Schaeffer's Volatility Scorecard (SVS) rating of 95 out of 100 [4]